A Gem in the West Loop: Unveiling Breneman Capital’s Newest Investment Opportunity
We are delighted to unveil our latest investment venture: Adams Laflin Place. Situated in the heart of Chicago’s bustling West Loop, this 52-unit Class A multifamily property is not just an investment opportunity—it’s a statement of our continued commitment to offer outstanding value to our community of investors. This high-potential asset is now featured in our Investor Portal, where we're actively welcoming equity partnerships.
Since the inception of our monthly investor updates, we've navigated through a challenging financial landscape marked by rising interest rates, stagnating growth, and rampant inflation. These were not just variables on a spreadsheet; they were hurdles we had to overcome to identify worthwhile investments for our stakeholders. Yet, our commitment never wavered. Over the past year, our team has rigorously examined a staggering 430 investment opportunities across eight diverse markets. We have meticulously filtered these prospects, ensuring they meet our stringent criteria—positive cash flow, strategic certainty, construction quality, desirable location, and economic resilience—to provide you a secure and profitable investment.
What follows is a commitment to you: an unyielding pursuit of opportunities that check all these boxes, led by a team that values the journey as much as the destination. Read on to learn more about why Chicago has called us home once again and why Adams Laflin Place stands out as a shining example of what we strive to offer.
Chicago's Resurgence:
Little did we know that it would be in our own backyard in Chicago. If you have kept up with our media (podcast, newsletter, blogs, etc.), you are well aware of our efforts to continue building our portfolio in Phoenix and to plant our flag in Texas. And those endeavors remain. However, we are always looking to challenge the status quo and ask ourselves difficult questions. Chicago’s stability and recent performance could no longer be ignored, and that’s when home began calling.
Chicago is where our founder Drew Breneman cut his teeth, acquiring 21 properties comprising 287 units total (with 5 properties sold for an average IRR of 26%) since 2013. His relationships in Chicago are as deep-rooted as anyone’s, and his block-by-block knowledge of the City is unrivaled. Moreover, through our in-house Chicago property management platform Dwelle Properties, we have real-time insights into market and submarket trends.
Chicago currently ranks #1 in rent growth out of all major markets, according to a new CoStar report. Most recently, our Chicago multifamily properties have achieved new lease trade-outs of +5% to +9% in 2023, in addition to a stellar 2022 when rents and occupancy surged. Chicago has also been the 3rd least volatile market in the nation over the last 10 years, according to our internal market ratings (comprises the 52 largest markets in the US and spans economic, demographic, apartment fundamentals, affordability, new supply, and single-family home trends). In addition to strong fundamentals, Chicago and the Midwest region overall exhibit the stability and higher-than-average cap rates where positive leverage and legitimate cash yields are achievable.
Market fundamentals, however, are not enough to warrant just any new investment, and we are pleased to share just what makes Adams Laflin such an exceptional investment opportunity. Stabilizing to a 7.04% cap rate, the investment has the highest cap rate we have seen in over 10 years for a property of this caliber in Chicago.
Because of the seller’s precarious sale efforts and having transacted with Breneman Capital in the past, we are acquiring at an exceptional basis of $385k/unit – an 18% discount to comparable sales and the lowest price ever paid per unit for a recently built multifamily property in the West Loop neighborhood. And with an outsized proportion of return derived from cash flow in addition to Adams Laflin Place’s high-quality construction and location, the opportunity comprises the characteristics necessary to minimize the range of potential outcomes and limit downside risk.
This investment checks every box for the very strict investment criteria we have set for ourselves. It took us 430 “No’s” to finally find a “Yes”; and although we hope not, this upcoming year could very well look the same given the state of the market. No matter, our unwavering commitment to our investors will persist. Now, we are eager for your commitment. We look forward to investing together.
Investors are always encouraged to schedule a time to speak with us to learn more about investing with Breneman Capital: breneman.com/schedule-a-call